Saroja Pharma Industries India
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Aug 2023 – 05 Sep 2023
- Listing date
- 13 Sep 2023
- Face value
- ₹10 per share
- Issue price
- ₹84 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹9.11 Cr
- Market cap at offer price
- ₹33.77 Cr
- Promoter holding
- 100.00% → 73.02% pre-issue → post-issue
- ISIN
- INE0PCL01011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Swastika Investmart Ltd.
- Registered office
- 305, Kailash Tower, Shiv Shristi Complex, Goregaon Link Road, Mulund West, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 54,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹84
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,34,400 |
| S-HNI (min) | 2 | 3,200 | ₹2,68,800 |
| S-HNI (max) | 7 | 11,200 | ₹9,40,800 |
| B-HNI (min) | 8 | 12,800 | ₹10,75,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.61 | 2.64 |
| P/E (×) | 23.27 | 31.82 |
| Price to book (×) | 4.85 | — |
| Market cap | — | ₹33.77 Cr |
Key performance indicators
- Return on net worth
- 20.85%
- ROCE
- 25.00%
- Debt / equity
- 2.00
- PAT margin
- 2.11%
- EBITDA margin
- 5.73%
- NAV per share
- ₹17.33
- Price to book
- 4.85
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Saroja Pharma Industries India
Saroja Pharma Industries India Limited was incorporated on January 14, 2019 as Saroja Pharma Industries India Private Limited and converted into a public limited company on April 18, 2023. Founded by promoters Mr. Biju Gopinathan Nair and Mr. Manish Dasharath Kamble, it was set up with the objective of service deliverance in chemical trading with premium pharmaceutical companies in India and abroad for cost-effective human and veterinary medicine. The company sources client-specified Pharma APIs, Pharma Intermediates, Chemicals and Solvents from suppliers (products are manufactured to client specifications, sample-approved by clients, and orders finalized), and dispatches them within India or abroad, earning revenue predominantly from domestic sales (90.62% of FY23 revenue) with exports (9.38%) to markets such as Pakistan, Jordan, Hong Kong, Singapore and Egypt, plus a small consultancy income. In FY2023 it reported revenue from operations of ₹5,019.32 Lakhs and profit after tax of ₹106.06 Lakhs. Through this fixed-price IPO it is raising up to ₹911.23 Lakhs, primarily to set up an API manufacturing unit (Albendazole, Oxyclozanide, Fenbendazole) on land already acquired at Harsule, Sinnar, Nashik, Maharashtra, and to repay unsecured loans.
Company Analysis
from RHPSaroja Pharma Industries India Limited is a Mumbai-based company that trades in Pharma APIs, Pharma Intermediates, Chemicals and Solvents used for human and veterinary medicines, and is raising funds to set up its own API manufacturing unit.
Saroja Pharma Industries India Limited was incorporated on January 14, 2019 as Saroja Pharma Industries India Private Limited and converted into a public limited company on April 18, 2023. Founded by promoters Mr. Biju Gopinathan Nair and Mr. Manish Dasharath Kamble, it was set up with the objective of service deliverance in chemical trading with premium pharmaceutical companies in India and abroad for cost-effective human and veterinary medicine. The company sources client-specified Pharma APIs, Pharma Intermediates, Chemicals and Solvents from suppliers (products are manufactured to client specifications, sample-approved by clients, and orders finalized), and dispatches them within India or abroad, earning revenue predominantly from domestic sales (90.62% of FY23 revenue) with exports (9.38%) to markets such as Pakistan, Jordan, Hong Kong, Singapore and Egypt, plus a small consultancy income. In FY2023 it reported revenue from operations of ₹5,019.32 Lakhs and profit after tax of ₹106.06 Lakhs. Through this fixed-price IPO it is raising up to ₹911.23 Lakhs, primarily to set up an API manufacturing unit (Albendazole, Oxyclozanide, Fenbendazole) on land already acquired at Harsule, Sinnar, Nashik, Maharashtra, and to repay unsecured loans.
Objects of the Issue
- To Set-up a Manufacturing Unit (API manufacturing facility; land already acquired at Harsule, Sinnar, Nashik, Maharashtra; total project cost ₹2,300.00 Lakhs) ₹ 704.88 Lakhs p.66
- To Repay the Unsecured Loans (outstanding unsecured loans of ₹218.46 Lakhs as on March 31, 2023) ₹ 175.00 Lakhs p.66
- Public Issue Expenses ₹ 31.35 Lakhs p.74
Issue Structure
- Total Issue
- Up to ₹ 911.23 Lakhs (10,84,800 Equity Shares)
- Fresh Issue
- Upto 10,84,800 Equity Shares aggregating up to ₹ 911.23 Lakhs
- Offer for Sale
- Nil
- Price Band
- Fixed Price Issue at ₹ 84/- per Equity Share (including share premium of ₹ 74/- per Equity Share)
- Face Value
- ₹ 10/- each
Business Model
The company earns revenue by trading pharmaceutical raw materials: it identifies client requirements, has products manufactured to specification by its suppliers, secures client approval of samples, and then supplies ordered quantities within India or abroad. Revenue comes mainly from domestic sales (90.62% of FY23 revenue) and exports (9.38%) across three product categories — Chemicals (66.08% of FY23 sales), Pharma Intermediates (22.43%) and APIs (10.53%) — supplemented by consultancy services (0.96%).
Business Segments
SWOT Analysis
- • Experienced promoters driving significant business growth since 2019(p.96)
- • Scalable, customer-centric and order-driven business model(p.96)
- • Wide and diverse product portfolio spanning chemicals, pharma intermediates and APIs(p.96)
- • Diversified revenue base across domestic and international markets(p.96)
- • Loyal extensive customer base(p.97)
- • Insurance of materials at all destinations ensuring safe global dispatch(p.97)
- • Heavy dependence on top 10 customers (~83.51% of FY23 revenue)(p.19)
- • Dependence on few suppliers (top 10 = 62.86% of purchases)(p.20)
- • No long-term supply agreements with vendors/suppliers(p.21)
- • No long-term written arrangements with clients(p.21)
- • Revenue concentration in chemical segment (~66% of total sales)(p.21)
- • Negative cash flows reported in certain financial years(p.22)
- • Low profit margins due to high resource pricing(p.97)
- • Government PLI scheme for domestic API/KSM manufacturing(p.88)
- • Growing global API market expected to reach USD 363.68 billion by 2032(p.87)
- • Diminishing hold of China creating extensive sales opportunities(p.97)
- • Backward integration into API manufacturing(p.101)
- • Expanding exports through international product registrations(p.97)
- • Government support for the pharmaceutical industry(p.97)
- • Highly competitive industry with organized and unorganized players(p.23)
- • COVID-19 pandemic material adverse effect on business(p.21)
- • Currency devaluation affecting profit margins(p.97)
- • Inflation of API raw materials leading to decreasing profit margins(p.97)
- • Changes in regulatory framework adversely affecting operations(p.28)
- • Interest rate fluctuations increasing cost of debt servicing(p.28)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Biju Gopinathan Nair | Promoter | 98.67% | 72.05% |
| Mr. Manish Dasharath Kamble | Promoter | 1.33% | 0.97% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.